AEA Papers and Proceedings
ISSN 2574-0768 (Print) | ISSN 2574-0776 (Online)
Import Constraints
AEA Papers and Proceedings
vol. 114,
May 2024
(pp. 118–23)
Abstract
During the recovery from the COVID-19 pandemic, international shipping and logistics capacity was strained, limiting the quantity of imports. We investigate the impact of an import constraint on inflation, following an increase in domestic demand. Whether the binding import constraint raises inflation depends on how it affects trade intermediation costs. If the binding constraint raises trade costs, then import price inflation also increases. In this case, however, foreign producer price inflation falls and import quantities rise more for inputs than final goods. Both these model results appear counterfactual, which suggests that import constraints may not explain observed import price inflation.Citation
Comin, Diego, Robert C. Johnson, and Callum Jones. 2024. "Import Constraints." AEA Papers and Proceedings, 114: 118–23. DOI: 10.1257/pandp.20241100Additional Materials
JEL Classification
- E31 Price Level; Inflation; Deflation
- E32 Business Fluctuations; Cycles
- F14 Empirical Studies of Trade
- I12 Health Behavior
- L14 Transactional Relationships; Contracts and Reputation; Networks